Is IFGL Refractori. overvalued or undervalued?

As of 23 September 2025, the valuation grade for IFGL Refractories has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its high PE ratio of 64.19, an EV to EBIT of 44.11, and a Price to Book Value of 1.69. In comparison, RHI Magnesita, which is rated as fair, has a PE ratio of 59.13 and an EV to EBITDA of 23.47, while Vesuvius India is classified as very expensive with a PE ratio of 41.73 and an EV to EBITDA of 29.88.
The current valuation metrics suggest that IFGL Refractories is trading at a premium compared to its peers, which raises concerns about its sustainability at these levels. Despite a strong performance over the past five years with a return of 253.63%, the recent decline in stock price over the past year by 15.66% contrasts with the Sensex's modest drop of 3.33%, reinforcing the notion that the stock may be overvalued in the current market context.